Amd will take charge of giving life to alibaba's servers

AMD has just entered into a strategic alliance with the popular China company Alibaba, which currently holds the world's largest online wholesale market. Alibaba is the owner of online shopping site Aliexpress, Taobao, and also has million-dollar investments with mobile phone maker Meizu.

What is the agreement and why is it so important to AMD?

AMD will be responsible for bringing to life all of Alibaba's servers, who are preparing a new cloud service that will compete strongly against Microsoft Azure and Amazon Web Services.

The deal was officially announced Friday at a press conference given by Lisa Su (AMD CEO and Simon Hu (President of Alibaba Cloud Services).

Alibaba servers will have all the power of Radeon Pro graphics cards, which will take advantage of all the computing power of GPU, or better known as GPGPU. The Radeon Pro will expand cloud computing capacity, where it already powers 35% of China's web pages.

In this way AMD continues to diversify its offer with great success, not only selling processors and graphics to the end user. Recall that the red company is the manufacturer of the 'semi-custom' chips for the XBOX One and Playstation 4 consoles, in addition to offering its processors to the Chinese government.

After the announcement, AMD managed to raise its shares by 5%.